Pareto Efficiency was named after Italian sociologist and economist Vilfredo Pareto in 1906. Pareto Efficiency (or Pareto Optimality) is defined as the efficiency of a market which is unable to produce more from the same level of inputs without reducing the output of another product.
Vilfredo Pareto, Manuale d'economia politica (Milan, 1906)
The term Pareto Efficient (cf: Pareto Optimum), therefore, means the "best that could be achieved without disadvantaging at least one group." (Allan Schick, in Louis C. Gawthrop, 1970, p.32) and much like many of Pareto's works, have been found to be far more compelling and universally applicable then initially believed.
Project Management ApplicationAll projects are constrained by the Project Triangle (Time, Scope, and Money). Based upon a given project's unique constraints, a project manager's goal is to complete the project with Pareto Efficiency, balancing these constraints and satisfying the requirements. Resource cuts extend project duration, trimming scope (using the Pareto Principal, hopefully) to reduce costs, and consciously sacrificing a little quality to beat the competition to the marketplace are all examples of the gymnastics required by effective project managers.
However, trim one of these factors too much and the others suffer, no matter the abundance of the other factors. The Pareto Efficient project is one in which each of the constraints are in balance toward effective project completion.
Vilfredo Pareto, Manuale d'economia politica (Milan, 1906)
The term Pareto Efficient (cf: Pareto Optimum), therefore, means the "best that could be achieved without disadvantaging at least one group." (Allan Schick, in Louis C. Gawthrop, 1970, p.32) and much like many of Pareto's works, have been found to be far more compelling and universally applicable then initially believed.
Project Management ApplicationAll projects are constrained by the Project Triangle (Time, Scope, and Money). Based upon a given project's unique constraints, a project manager's goal is to complete the project with Pareto Efficiency, balancing these constraints and satisfying the requirements. Resource cuts extend project duration, trimming scope (using the Pareto Principal, hopefully) to reduce costs, and consciously sacrificing a little quality to beat the competition to the marketplace are all examples of the gymnastics required by effective project managers.
However, trim one of these factors too much and the others suffer, no matter the abundance of the other factors. The Pareto Efficient project is one in which each of the constraints are in balance toward effective project completion.
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